The political funding bill – what to expect


As reported yesterday, Minister in the Prime Minister’s Department (Parliament and Law) Wan Junaidi Tuanku Jaafar said that the memorandum on the proposed political funding bill is expected to be presented to the cabinet in September to enable the bill to be tabled in the next parliament sitting in late October.

This bill acts as a complementary to the anti-party hopping bill that was recently passed by both houses.

The need for a political funding act is important as it protects and ensures transparency in political contribution. If there is no proper regulation in funding, the likelihood of corruption taking place is there.

Nevertheless, as of 2021, Malaysia ranked 62 out of 180 countries under the Corruption Perceptions Index. The drop in rank does reflect on the level of corruption in the country.

The United Nations Convention Against Corruption, article 7.3, calls upon the states to consider enacting appropriate legislative and administrative measures and accordance with the fundamental principles of its domestic law, to enhance transparency in the funding of candidatures for elected public office and where applicable, the funding of political parties.

As of now, Malaysia is yet to have a proper principal act, to monitor the political funding of elected public officers. The legal framework that monitors political party funding can be seen in a few acts and among them would be the Election Offence Act 1954 (EO), Societies Act 1966, the Malaysian Anti-Corruption Commission Act 2009, and an administrative rule, the Constituency Development Fund.

In Malaysia, funding for elections or the budget relies on the flow of funds from businesses run by parties, in formal and informal revenue. It is a stage for open corruption, as the public knows so little about funding.

Thus, what can we expect from the proposed bill?

Perhaps, we can start with the source of funding. Public funding is a sustainable way to draw political parties away from private funding. Data show that most developed countries have a direct public funding law. Since it involves public money, it requires the political party to disclose their financial expenses to the public. During the Johor election, Muda acquired funds through crowdfunding, and it is something doable.

This can be done by amending the Societies Act 1966, and making it mandatory, to allow for the public disclosure of financial reports. This is to show a party’s accountability and transparency.

In addition to that, strict regulations on government-linked companies must be imposed by the Election Committee. Perhaps the use of section 56 of the Companies Act 2016, to compel the disclosure of political donations by corporations, together with Companies Commission of Malaysia guidelines could be enforced.

Moving on, setting up a certain threshold, for foreigners’ interests and local in the political candidate should be imposed. Perhaps, we can look at Singapore’s Political Donation Act 2011, section 2. In which the “permissible donor” falls under certain requirements.

In conclusion, a proper framework is needed, to ensure the funds or donations that are channeled to parties will be used only for public interest. This bill is expected to provide a transparent, competitive and an accountable political climate in Malaysia, that upholds the rule of law. – August 14, 2022.

* Matilda George reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.



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  • .... or else bribery and corruption are excused away as elections' donations.

    Posted 1 year ago by Malaysian First · Reply